If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant,can it still keep the exchange rate fixed at ? Please explain with the aid of a figure.

Question

If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant,can it still keep the exchange rate fixed at  ? Please explain with the aid of a figure.

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The Answer of If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant,can it still keep the exchange rate fixed at  ? Please explain with the aid of a figure.

If the Central Bank Does Not Purchase Foreign Assets When